If you've ever received a box of candy hearts imprinted with cute sayings for Valentine's Day, you know about the New England Confectionery Company, or Necco for short. Behind the scenes of the 150-year tradition of “Conversation Hearts” is a collaborative and empowered group of 500 employees who work in teams at Necco's headquarters in Revere, Massachusetts.

Facilitating change at the oldest candy-making company in the United States is no easy feat. A company executive with the title of lean champion works tirelessly to engage and empower the workforce, build awareness, and capture energy and passion among employees. In addition, the lean champion tries to find the root cause of wasteful activities and to eliminate anything that does not add value to the company's products. Eliminating waste, whether it be materials, supplies, or production processes, is Necco's overall goal. For example, once the circles used to make Necco wafers are printed, the remaining dough is automatically reused and sent through the machine to produce more product.

In addition to reducing waste, part of the company's initiative is to add value. This includes determining employee training needs, identifying tools to do jobs more efficiently, and working collaboratively to determine strategies for improvement. Necco has reduced scrap and reworks, which has resulted in improved quality and production lead times. However, none of this can be accomplished without Necco employees, who are all members of the company's various teams.

Necco's lean initiative, pervasive throughout its culture of expansion, rebuilding, and improvement, is practiced from the top down. One recent change was the decision to discontinue its all-natural wafers.

In a move to meet consumer demand, Necco decided to produce its centuries-old wafer as all natural, substituting corn syrup for sugar and using beet juice and purple cabbage in place of colorings and sweeteners. Customers were not happy with the change, and management made the decision to revert back to the original ingredients, which resulted in a sales rebound of 20%. In addition, to appeal to the next generation of candy lovers, the Sweetheart candies were introduced in new, trendier flavors. These steps are part of Necco's long-term vision for innovation, new products, and new markets.

Integral to the growth and transformation of Necco's products is employee engagement. The company solicits input from employees, all of whom are considered “experts” in their respective work areas.

When employees know there is someone within the organization to champion their efforts, they want to come to work, and the more support they have, the more they do for the company. For improvement to occur, Necco's leadership team not only talks the talk but walks the walk. Goals and values, referred to as key performance indicators or KPIs, are developed by top management and supported at every level of the company. Rewards are linked to both company and department performance.

When goals are met, manufacturing workers on a single production line are given monetary incentives. Within the wafers team—the company's largest—various departments work together, including sales, marketing, production, and engineering. In addition to each product team, Necco assembles cross-functional teams to problem solve and improve processes. Staying involved in all phases of the business keeps employees engaged, knowledgeable, and interested.

Necco's focus on product quality requires teamwork and collaboration, and it doesn't end after the candy is produced. Teams in sales, packaging, distribution, and shipping play an integral role in managing everything from the purchase of raw materials to product delivery. The company's improvement plan is fueled by the trust and cohesiveness among team members in each of Necco's units.

Necco's recipe for empowerment includes the key ingredients of knowledge and education for employees to perform their jobs effectively. If things don't go as planned, employees have the authority to stop the process to make the proper adjustments.

Necco's open-door policy encourages employees at all levels to meet and speak with others throughout the organization, regardless of rank or hierarchy.

At Necco, continuing to woo the next generation of customers requires knowledge, support, engagement, and collaboration among its employees and work teams. With its focus on innovation, product development, and employee empowerment, Necco hopes for many more conversations with its “Conversation Hearts.”

Questions for Critical Thinking

1. Give three specific reasons why empowerment is key to Necco's success. Provide examples of how Necco empowers its employees.

2. Select the concept of a problem-solving team or a self-managed team. How might this team function at Necco? Who might be on the team, and what role might the team have in the running of the company?

3. Give an example of a situation in which informal communication would work well among Necco employees—either on the production floor or among its top leadership team.

4. Describe the five stages of team development, and provide an example of what each stage might look like at Necco.